2. MetroCOG workforce housing study

I Strategic Initiative 4: Resources At the lower end of the housing market, whether homes for sale under $110,000 or apartments renting for less than $600 per month, the costs of land and construction are rising. Best practices research reveals that regulatory changes to reduce development costs or inclusionary zoning alone are not enough. Incentives and financial help are needed as well. Offsetting the infrastructure costs in new subdivisions or low interest private financing of new rental housing are two examples of how to bring down the cost of housing. The regional working group should explore the potential to create a regional workforce housing fund. A workforce housing fund established by communities, home builders, Realtors, lenders, foundations, major interested employers and institutions can accomplish the following: B Address the projected market demand for the 300-350 workforce apartments and 1,750 homes by 2010, · Help reduce costs of new subdivisions with mixed-income housing, B Financially assist employees to buy their first homes through Employee Assistance Programs (EAPs). Sources of revenue for the fund will need to be determined. The "trust" fund model uses a dedicated source of public revenue. The workforce housing fund model uses a combination of government and private funds and investments. ACTIONS ./ Explore the option of establishing a regional workforce housing fund. The regional working group is best suited to undertake this exploration. It should work with entities such as the Fargo-Moorhead Chamber of Commerce, Home Builders Association of Fargo-Moorhead, Fargo-Moorhead Association of Realtors, Greater Fargo-Moorhead Economic Development Corporation and participating local governments 39 Lind:! S, Donneily. '\.LCP. August 2(1(16